By , LONDON/TOKYO (Reuters) - European manufacturers may be over the worst of a coronavirus-driven downturn, but Asia’s pain deepened in May due to a slump in global trade, with export powerhouses Japan and South Korea seeing the sharpest falls in activity in over a decade, surveys showed.The new coronavirus pandemic - which has killed more than 370,000 people around the world - has wreaked havoc with supply chains and quashed demand as government-imposed lockdowns forced businesses to close and citizens to stay home.While factory activity still contracted sharply across Europe last month,...…By , LONDON/TOKYO (Reuters) - European manufacturers may be over the worst of a coronavirus-driven downturn, but Asia’s pain deepened in May due to a slump in global trade, with export powerhouses Japan and South Korea seeing the sharpest falls in activity in over a decade, surveys showed.The new coronavirus pandemic - which has killed more than 370,000 people around the world - has wreaked havoc with supply chains and quashed demand as government-imposed lockdowns forced businesses to close and citizens to stay home.While factory activity still contracted sharply across Europe last month,...WW…

By , (Reuters) - The U.S. economy appears set to leave other developed markets in the dust this year with the largest annual growth spurt in decades, new Federal Reserve forecasts indicate, but that divergence is not worrying to the central bank’s top official.If anything, Fed Chair Jerome Powell sees a greater likelihood the strong U.S. rebound from the coronavirus pandemic will help jump-start countries still struggling to find their footing, such as Europe, rather than those weak showings overseas impeding the domestic recovery.“U.S. demand, very strong U.S. demand, as the economy...…By , (Reuters) - The U.S. economy appears set to leave other developed markets in the dust this year with the largest annual growth spurt in decades, new Federal Reserve forecasts indicate, but that divergence is not worrying to the central bank’s top official.If anything, Fed Chair Jerome Powell sees a greater likelihood the strong U.S. rebound from the coronavirus pandemic will help jump-start countries still struggling to find their footing, such as Europe, rather than those weak showings overseas impeding the domestic recovery.“U.S. demand, very strong U.S. demand, as the economy...WW…

By , TOKYO (Reuters) - Japan’s economy expanded more than expected in the fourth quarter, extending the recovery from its worst postwar recession thanks to a rebound in overseas demand that boosted exports and capital spending.But the recovery slowed from the third quarter’s brisk pace and new state of emergency curbs cloud the outlook, underscoring the challenge policymakers face in preventing the spread of COVID-19 without choking off a fragile recovery, especially in the battered consumer sector.“Conditions are such that Japan will not be able to avoid negative growth in the first...…By , TOKYO (Reuters) - Japan’s economy expanded more than expected in the fourth quarter, extending the recovery from its worst postwar recession thanks to a rebound in overseas demand that boosted exports and capital spending.But the recovery slowed from the third quarter’s brisk pace and new state of emergency curbs cloud the outlook, underscoring the challenge policymakers face in preventing the spread of COVID-19 without choking off a fragile recovery, especially in the battered consumer sector.“Conditions are such that Japan will not be able to avoid negative growth in the first...WW…

By TOKYO (Reuters) - Japan’s central bank has no plans to “permanently reduce” its purchases of exchange-traded funds (ETF), its governor said on Tuesday, signalling that its upcoming policy review won’t lead to a radical change in its asset-buying scheme.Bank of Japan Governor Haruhiko Kuroda also said the recent stock price rally reflected market optimism over the global economic outlook, brushing aside views its ultra-loose policy was fuelling an asset price bubble.“Optimism over the global economic outlook and steady vaccine roll-outs may be behind the recent surge in stock prices,”...…By TOKYO (Reuters) - Japan’s central bank has no plans to “permanently reduce” its purchases of exchange-traded funds (ETF), its governor said on Tuesday, signalling that its upcoming policy review won’t lead to a radical change in its asset-buying scheme.Bank of Japan Governor Haruhiko Kuroda also said the recent stock price rally reflected market optimism over the global economic outlook, brushing aside views its ultra-loose policy was fuelling an asset price bubble.“Optimism over the global economic outlook and steady vaccine roll-outs may be behind the recent surge in stock prices,”...WW…

By Slideshow TOKYO (Reuters) - Japanese bank deposits surged at a record annual pace in January, data showed on Monday, a sign companies and households were continuing to hoard cash to guard against the prolonged damage from the coronavirus pandemic.Total deposits at commercial banks rose a record 9.8% in January from a year earlier to hit 806.2 trillion yen ($7.6 trillion), accelerating from a 9.3% gain in December, according to data released by the Bank of Japan.Companies were piling up money from subsidies and loans they took up as a precaution against the health crisis, while households...…By Slideshow TOKYO (Reuters) - Japanese bank deposits surged at a record annual pace in January, data showed on Monday, a sign companies and households were continuing to hoard cash to guard against the prolonged damage from the coronavirus pandemic.Total deposits at commercial banks rose a record 9.8% in January from a year earlier to hit 806.2 trillion yen ($7.6 trillion), accelerating from a 9.3% gain in December, according to data released by the Bank of Japan.Companies were piling up money from subsidies and loans they took up as a precaution against the health crisis, while households...WW…

By TOKYO (Reuters) - Japan’s core consumer prices fell in October at their fastest annual pace in nearly a decade as the boost from last year’s sales tax hike petered out, heightening fears of a return to deflation for an economy still dealing with COVID-19.Analysts expect consumer prices to continue falling in coming months due to sluggish consumption, casting doubt on the central bank’s view Japan will eventually see prices bounce back towards its elusive 2% inflation target.A resurgence in coronavirus infections also clouds the outlook, as it may hurt consumption and dent the boost to...…By TOKYO (Reuters) - Japan’s core consumer prices fell in October at their fastest annual pace in nearly a decade as the boost from last year’s sales tax hike petered out, heightening fears of a return to deflation for an economy still dealing with COVID-19.Analysts expect consumer prices to continue falling in coming months due to sluggish consumption, casting doubt on the central bank’s view Japan will eventually see prices bounce back towards its elusive 2% inflation target.A resurgence in coronavirus infections also clouds the outlook, as it may hurt consumption and dent the boost to...WW…

By , TOKYO (Reuters) - Japan announced a fresh $708 billion economic stimulus package on Tuesday to speed up the recovery from the country’s deep coronavirus-driven slump, while targeting investment in new growth areas such as green and digital innovation.The new package will include about 40 trillion yen ($384.54 billion) in direct fiscal spending and initiatives targeted at reducing carbon emissions and boosting adoption of digital technology.Policymakers globally have unleashed a wall of monetary and fiscal stimulus to prevent a deep and prolonged recession as the coronavirus closed...…By , TOKYO (Reuters) - Japan announced a fresh $708 billion economic stimulus package on Tuesday to speed up the recovery from the country’s deep coronavirus-driven slump, while targeting investment in new growth areas such as green and digital innovation.The new package will include about 40 trillion yen ($384.54 billion) in direct fiscal spending and initiatives targeted at reducing carbon emissions and boosting adoption of digital technology.Policymakers globally have unleashed a wall of monetary and fiscal stimulus to prevent a deep and prolonged recession as the coronavirus closed...WW…

By TOKYO (Reuters) - More than 30 major Japanese firms will begin experiments next year towards issuing a common, private digital currency to promote digitalisation in one of the world’s most cash-loving countries, the group’s organising body said on Thursday.The move follows the Bank of Japan’s recently announced plan to experiment with issuing a digital yen, underscoring a growing awareness of the need for Japan to catch up to rapid global advances in financial technology.The group, consisting of Japan’s three biggest banks as well as brokerages, telecommunication firms, utilities and...…By TOKYO (Reuters) - More than 30 major Japanese firms will begin experiments next year towards issuing a common, private digital currency to promote digitalisation in one of the world’s most cash-loving countries, the group’s organising body said on Thursday.The move follows the Bank of Japan’s recently announced plan to experiment with issuing a digital yen, underscoring a growing awareness of the need for Japan to catch up to rapid global advances in financial technology.The group, consisting of Japan’s three biggest banks as well as brokerages, telecommunication firms, utilities and...WW…

It looks like you're using an ad blocker.To enjoy our content, please include The Japan Times on your ad-blocker's list of approved sites.Thank you for supporting our journalism.The government should remove a 10 percent sales tax to revive an economy dragged down by the coronavirus pandemic, a ruling party lawmaker close to Economy Minister Yasutoshi Nishimura said on Thursday, expressing a view that may gain traction as the country’s recession deepens.Hiroshi Ando is among a group of junior Liberal Democratic Party (LDP) lawmakers proposing that Japan get rid of the sales tax and directly...…It looks like you're using an ad blocker.To enjoy our content, please include The Japan Times on your ad-blocker's list of approved sites.Thank you for supporting our journalism.The government should remove a 10 percent sales tax to revive an economy dragged down by the coronavirus pandemic, a ruling party lawmaker close to Economy Minister Yasutoshi Nishimura said on Thursday, expressing a view that may gain traction as the country’s recession deepens.Hiroshi Ando is among a group of junior Liberal Democratic Party (LDP) lawmakers proposing that Japan get rid of the sales tax and directly...WW…

By TOKYO (Reuters) - International Monetary Fund Chief Economist Gita Gopinath urged governments to shift to “equity-like” support from one focused on loans as the coronavirus pandemic inflicts prolonged damage on companies.Gopinath said the massive scale of the shock meant more firms will become insolvent as they suffer lower revenues for many months.Government support in the form of loans would saddle such companies with huge debt, which would serve like a tax that makes it difficult for them to emerge from the crisis, she said.“Because there’s a bigger insolvency issue here, government...…By TOKYO (Reuters) - International Monetary Fund Chief Economist Gita Gopinath urged governments to shift to “equity-like” support from one focused on loans as the coronavirus pandemic inflicts prolonged damage on companies.Gopinath said the massive scale of the shock meant more firms will become insolvent as they suffer lower revenues for many months.Government support in the form of loans would saddle such companies with huge debt, which would serve like a tax that makes it difficult for them to emerge from the crisis, she said.“Because there’s a bigger insolvency issue here, government...WW…